* Deal aims to reduce long-term debt by 60 percent
* To propose to EGM a 95 pct reduction of capital stock
* Reported 2012 net loss of 477 mln euros late Monday
(Recasts, adds details on debt restructuring, bondholders)
FRANKFURT, April 30 (Reuters) - Germany's SolarWorld
said it reached a preliminary deal on restructuring
its 1.2 billion euros ($1.6 billion) debt load, including a
debt-to-equity swap that would hand its creditors most of the
ailing solar group.
SolarWorld, once Germany's largest solar company and 27.84
percent owned by its chief executive and founder, Frank Asbeck,
said on Tuesday it had agreed with its major creditors to reduce
long-term liabilities by about 60 percent.
Western manufacturers of solar power equipment, above all in
Germany, have come under intense pressure due to a global
overcapacity in the solar industry, which has forced many
players including some of the formerly biggest players, Q-Cells
and Solon, to file for insolvency.
SolarWorld also said it would recommend to an extraordinary
shareholders' meeting that the company reduce its capital stock
by 95 percent, virtually wiping out existing shareholders, in
order to then raise fresh equity.
The group in January warned bondholders that it would
restructure debt and said holders of securities worth 550
million euros maturing in July 2016 and in
January 2017 would be hit the most.
According to Thomson Reuters data, some of the biggest
bondholders in the company include GFC Advisers LLC, Do
Investment AG and Pioneer Investment Management Ltd.
By aiming for a debt-to-equity swap, SolarWorld follows
German peer Conergy, which gave control over the
company to hedge funds in a similar deal in late 2010.
SolarWorld late on Monday reported a net loss of 477 million
euros for 2012.
($1 = 0.7634 euros)
(Reporting by Christoph Steitz; Editing by Harro ten Wolde and